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Updates prices, adds quotes
March 16 (Reuters) – London copper prices bounced back on Thursday from a more than two-month low hit in the previous session, as authorities pledged liquidity support to Swiss bank Credit Suisse Group and consumption improved in top consumer China.
Credit Swiss CSGN.S, whose shares plunged 30% on Wednesday to a record low amid concerns of its financial strength, planned to borrow from the Swiss National Bank to boost liquidity, shortly after Swiss authorities pledged support to the lender.
Three-month copper on the London Metal Exchange CMCU3 rose 0.9% to $8,581.50 a tonne by 0512 GMT. The contract in the previous session hit $8,489.50 a tonne, its lowest since Jan. 6, on Credit Suisse’s rout.
A sign of demand picking up in top consumer China also supported prices, with Yangshan copper premium SMM-CUYP-CN – which reflects demand for imported copper into China – rose to $35 a tonne on Wednesday, its highest since Jan. 9.
“(Copper) looks cheap (and was) unduly sold off,” said a metals trader, adding that physical consumers were buying when prices fell, but trading volume was tepid on risk aversion amid uncertainty in the global banking sector.
LME aluminium CMAL3 rose 0.6% to $2,291 a tonne, zinc CMZN3 eased 0.5% to $2,853 a tonne, lead CMPB3 advanced 0.5% to $2,080 a tonne while tin CMSN3 lost 2.2% to $21,960 a tonne.
The premium of SHFE first-month aluminium over the three-month contract was at 25 yuan a tonne, the first premium since Jan. 5, indicating tightening nearby supplies.
The Australian unit of U.S. aluminium producer Alcoa Corp AA.N announced a production cut at its Portland smelter in Victoria to about 75% of its total capacity of 358,000 metric tonnes per year, citing instability and production challenges.
The most-traded April copper contract on the Shanghai Futures Exchange SCFcv1 fell 2.7% to 66,950 yuan ($9,700.09) a tonne, tracking overnight losses in London and dropping to as low as 66,590 yuan a tonne, its lowest since Jan. 10.
SHFE aluminium SAFcv1 declined 1.1% to 18,150 yuan a tonne, nickel SNIcv1 fell 2.9% to 172,850 yuan a tonne, zinc SZNcv1 shed 2.6% to 22,285 yuan a tonne and tin SSNcv1 tumbled as much as 4.5% to 178,760 yuan a tonne, its lowest since November last year.
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($1 = 6.9020 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich)
((mai.nguyen@thomsonreuters.com; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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